Cube Highways and Infrastructure II (Cube Highways) has completed its acquisition of Farakka-Raiganj Highways Limited (FRHL), an operating toll road in West Bengal state in India, from HCC Concessions, for INR 1,508 crore.

The acquisition by Cube Highways was executed through its ISQ Global Infrastructure Fund II.

The deal expands the portfolio of the Singapore-based Cube Highways group to 27 highways with about 8,400 lane-kilometers across India, which includes assets under various stages of closing. Cube Highways is a portfolio firm of I Squared Capital.

Farakka-Raiganj Highways operates a 100-kilometer, four-lane toll road that links Farakka and Raiganj in West Bengal.

The company was awarded a 30-year concession following competitive bidding in 2010 for strengthening and widening a two-lane highway to a four-lane configuration.

The project has been operational since late 2016 and is part of National Highway-12.

Arjun Dhawan – Group CEO of HCC said: “We are pleased to conclude a transaction of this size and complexity, despite the hurdles presented by COVID19. We have faced every type of challenge in developing this project, from lengthy
land acquisition delays to meeting the expectations of numerous stakeholders while executing in major towns such as Farakka, Kaliachawk, Malda, and Gajol.”

FRHL, which is on the arterial route in West Bengal, connects important tourist attractions and trade centers from Kolkata to Siliguri and Darjeeling. The road also serves as a feeder route to North Bengal, North-East India, and also to neighboring countries Nepal and Bhutan.

Gautam Bhandari – Director of Cube Highways and Managing Partner of I Squared Capital said: “Completing the acquisition during the challenges of the Covid-19 pandemic is a testament to the operational capabilities of the Cube Highways team and the strength of the platform. Cube Highways worked constructively with the seller to restructure the transaction so that risks are more appropriately shared to achieve a win-win outcome.

“Successful closing of this transaction, despite COVID, demonstrates the execution leadership of Cube Highways and makes it a partner of choice for all leading Indian infrastructure road construction companies that seek to monetize their assets and recycle capital.”

According to Cube Highways, FRHL expands its geographic footprint to East India, besides diversifying its traffic flows and component portfolio. The Singapore company said that the road has seen a healthy rebound of traffic post-lockdown, which underscores its strategic location with resilience and stickiness of the commercial traffic that heads towards north Bengal and northeastern India.

  Arjun Dhawan, Cube Highways, Farakka-Raiganj Highways Limited, Gautam Bhandari, HCC Concessions, India, Singapore, West Bengal